Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin52.2%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin32.3%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt1.7 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$543M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$6.2B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
B
Free Cash Flow$3.4B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income30.6%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$6.5B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit53.6%
Operating Margin52.2%
Net Margin32.3%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
Gross Profit %
53.6%▲
50.3%▲
44.2%▼
45.8%
Operating Margin %
52.2%▲
48.6%▲
42.4%▼
44.1%
Net Income %
32.3%▲
29.5%▲
24.5%▼
26.3%
Diluted EPS
5.14▲
4.10▲
2.91▼
3.16
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$21.4B
$18.7B
$16.7B
$17.3B
N/A
Total Debt
$7.4B▲
$7.0B▼
$7.0B▼
$7.1B•
N/A
Working Capital
$6.2B▲
$3.9B▲
$3.0B▼
$4.0B•
N/A
Years to Pay Debt
1.71
2.07
2.90
2.69
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$3.4B▲
$3.4B▲
$2.6B▲
$1.9B•
N/A
Owner Earnings
$6.5B
$5.2B
$4.3B
$4.4B
N/A
CapEx % of Net Income
30.6%
30.4%
41.6%
35.9%
N/A
Income Statement
2025
2024
2023
2022
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
8,022,000
6,537,400
5,116,100
5,384,200
Net Income From Continuing Operation Net Minority Interest
4,334,900
3,376,800
2,425,200
2,638,500
Reconciled Depreciation
868,400
845,900
833,600
796,300
Reconciled Cost Of Revenue
6,227,600
5,687,300
5,521,300
5,445,400
EBITDA
8,022,000
6,537,400
5,116,100
5,384,200
EBIT
7,153,600
5,691,500
4,282,500
4,587,900
Net Interest Income
-169,600
-202,700
-240,100
-305,100
Interest Expense
369,300
334,100
326,700
340,100
Interest Income
199,700
131,400
86,600
35,000
Normalized Income
4,334,900
3,376,800
2,425,200
2,638,500
Net Income From Continuing And Discontinued Operation
4,334,900
3,376,800
2,425,200
2,638,500
Total Expenses
6,418,200
5,878,700
5,703,500
5,612,100
Total Operating Income As Reported
7,001,700
5,554,700
4,192,300
4,435,800
Diluted Average Shares
841,962
823,744
834,283
834,283
Basic Average Shares
841,962
823,744
834,283
834,283
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
4,334,900
3,376,800
2,425,200
2,638,500
Net Income Common Stockholders
4,334,900
3,376,800
2,425,200
2,638,500
Net Income
4,334,900
3,376,800
2,425,200
2,638,500
Minority Interests
-13,300
-11,800
-9,500
-9,500
Net Income Including Noncontrolling Interests
4,348,200
3,388,600
2,434,700
2,648,000
Net Income Continuous Operations
4,348,100
3,388,600
2,434,700
2,648,000
Earnings From Equity Interest Net Of Tax
34,000
6,400
-2,200
-3,700
Tax Provision
2,470,200
1,975,200
1,518,900
1,596,100
Pretax Income
6,784,300
5,357,400
3,955,800
4,247,800
Other Income Expense
-47,700
5,500
3,600
117,100
Other Non Operating Income Expenses
-47,700
5,500
3,600
117,100
Net Non Operating Interest Income Expense
-169,600
-202,700
-240,100
-305,100
Interest Expense Non Operating
369,300
334,100
326,700
340,100
Interest Income Non Operating
199,700
131,400
86,600
35,000
Operating Income
7,001,800
5,554,700
4,192,300
4,435,800
Operating Expense
190,600
191,400
182,200
166,700
Selling General And Administration
137,800
130,500
127,200
125,000
Gross Profit
7,192,400
5,746,100
4,374,500
4,602,500
Cost Of Revenue
6,227,600
5,687,300
5,521,300
5,445,400
Total Revenue
13,420,000
11,433,400
9,895,800
10,047,900
Operating Revenue
13,420,000
11,433,400
9,895,800
10,047,900
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
66,715
99,417
120,309
120,322
Ordinary Shares Number
834,325
834,314
834,297
834,285
Share Issued
901,040
933,731
954,605
954,607
Net Debt
2,446,100
3,000,200
5,103,100
4,181,500
Total Debt
7,413,500
6,997,700
7,030,000
7,102,600
Tangible Book Value
10,988,600
9,121,800
7,364,900
8,029,100
Invested Capital
17,788,800
15,429,900
13,672,700
14,335,400
Working Capital
6,207,400
3,926,200
3,041,000
3,952,000
Net Tangible Assets
10,988,600
9,121,800
7,364,900
8,029,100
Capital Lease Obligations
662,800
739,400
775,400
851,400
Common Stock Equity
11,038,100
9,171,600
7,418,100
8,084,200
Total Capitalization
17,788,800
14,930,100
13,672,700
14,335,400
Total Equity Gross Minority Interest
11,104,900
9,238,200
7,481,200
8,146,900
Minority Interest
66,800
66,600
63,100
62,700
Stockholders Equity
11,038,100
9,171,600
7,418,100
8,084,200
Other Equity Interest
100
100
Gains Losses Not Affecting Retained Earnings
8,300
-2,200
-8,000
-9,000
Other Equity Adjustments
8,300
-2,200
-8,000
-9,000
Treasury Stock
2,034,200
2,700,700
3,149,000
3,107,600
Retained Earnings
5,797,200
6,839,600
7,033,500
7,702,300
Additional Paid In Capital
7,257,900
5,026,000
3,532,800
3,489,700
Capital Stock
8,800
8,800
8,800
8,800
Common Stock
8,800
8,800
8,800
8,800
Total Liabilities Net Minority Interest
10,276,500
9,475,300
9,244,100
9,130,500
Total Non Current Liabilities Net Minority Interest
8,131,400
7,227,200
7,855,600
7,894,800
Other Non Current Liabilities
105,700
35,600
66,200
82,400
Tradeand Other Payables Non Current
97,100
104,900
92,700
40,600
Non Current Deferred Liabilities
130,500
124,500
132,200
161,200
Non Current Deferred Taxes Liabilities
130,500
124,500
132,200
161,200
Long Term Debt And Capital Lease Obligation
7,327,000
6,416,100
6,952,000
7,025,300
Long Term Capital Lease Obligation
576,300
657,600
697,400
774,100
Long Term Debt
6,750,700
5,758,500
6,254,600
6,251,200
Long Term Provisions
471,100
546,100
612,500
585,300
Current Liabilities
2,145,100
2,248,100
1,388,500
1,235,700
Other Current Liabilities
100
100
Current Debt And Capital Lease Obligation
86,500
581,600
78,000
77,300
Current Capital Lease Obligation
86,500
81,800
78,000
77,300
Current Debt
499,800
299,700
Other Current Borrowings
499,800
299,700
Payables And Accrued Expenses
2,058,500
1,666,400
1,310,500
1,158,400
Current Accrued Expenses
562,600
416,000
379,600
362,700
Interest Payable
115,000
97,100
97,100
97,100
Payables
1,495,900
1,250,400
930,900
795,700
Total Tax Payable
634,400
635,200
278,300
138,100
Income Tax Payable
634,400
635,200
278,300
138,100
Accounts Payable
861,500
615,200
652,600
657,600
Total Assets
21,381,400
18,713,500
16,725,300
17,277,400
Total Non Current Assets
13,028,800
12,539,200
12,295,800
12,089,700
Other Non Current Assets
1,462,700
1,369,300
1,243,000
1,158,900
Non Current Deferred Assets
336,300
310,600
256,100
237,300
Non Current Deferred Taxes Assets
336,300
310,600
256,100
237,300
Investments And Advances
134,500
111,900
108,200
110,800
Long Term Equity Investment
134,500
111,900
108,200
110,800
Goodwill And Other Intangible Assets
49,500
49,800
53,200
55,100
Other Intangible Assets
7,600
7,900
11,300
13,200
Goodwill
41,900
41,900
41,900
41,900
Net PPE
11,045,800
10,697,600
10,635,300
10,527,600
Accumulated Depreciation
-11,210,400
-10,547,600
-10,066,600
-9,561,900
Gross PPE
22,256,200
21,245,200
20,701,900
20,089,500
Construction In Progress
1,822,500
1,579,100
1,664,800
1,747,000
Other Properties
700,800
739,500
775,400
851,400
Buildings And Improvements
18,778,200
18,013,500
17,439,300
16,718,300
Land And Improvements
377,500
340,100
277,500
275,400
Current Assets
8,352,500
6,174,300
4,429,500
5,187,700
Other Current Assets
31,400
31,500
38,100
44,400
Prepaid Assets
331,200
346,700
395,400
377,600
Inventory
1,058,100
1,048,900
1,016,900
1,013,900
Other Inventories
238,600
217,300
230,900
259,700
Finished Goods
68,300
55,900
68,800
78,500
Work In Process
327,900
343,800
313,000
330,500
Raw Materials
423,300
431,900
404,200
345,200
Receivables
2,022,600
1,243,800
1,228,300
1,473,800
Other Receivables
79,700
87,900
Accounts Receivable
2,022,600
1,243,800
1,228,300
1,473,800
Cash Cash Equivalents And Short Term Investments
4,909,200
3,503,400
1,750,800
2,278,000
Other Short Term Investments
604,600
245,300
599,300
208,300
Cash And Cash Equivalents
4,304,600
3,258,100
1,151,500
2,069,700
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
3,426,800
3,394,400
2,564,500
1,854,000
Repayment Of Debt
-500,000
0
0
-300,000
Issuance Of Debt
993,800
0
0
0
Capital Expenditure
-1,325,300
-1,027,300
-1,008,600
-948,500
Interest Paid Supplemental Data
388,200
369,700
369,700
380,200
Income Tax Paid Supplemental Data
1,590,800
1,434,000
2,391,500
1,947,100
End Cash Position
4,304,600
3,258,100
1,151,500
2,069,700
Beginning Cash Position
3,258,100
1,151,500
2,069,700
3,002,000
Effect Of Exchange Rate Changes
-13,700
3,400
8,300
-57,000
Changes In Cash
1,060,200
2,103,200
-926,500
-875,300
Financing Cash Flow
-2,007,200
-1,645,200
-3,101,200
-3,011,000
Cash Flow From Continuing Financing Activities
-2,007,300
-1,645,100
-3,101,200
-3,011,000
Net Other Financing Charges
-15,900
-8,000
-8,800
-5,200
Cash Dividends Paid
-2,485,100
-1,637,200
-3,092,400
-2,705,800
Common Stock Dividend Paid
-2,485,100
-1,637,200
-3,092,400
-2,705,800
Net Issuance Payments Of Debt
493,800
0
0
-300,000
Net Long Term Debt Issuance
493,800
0
0
-300,000
Long Term Debt Payments
-500,000
0
0
-300,000
Long Term Debt Issuance
993,800
0
0
0
Investing Cash Flow
-1,684,600
-673,300
-1,398,400
-666,800
Cash Flow From Continuing Investing Activities
-1,684,600
-673,300
-1,398,400
-666,800
Net Other Investing Changes
1,200
3,200
-4,500
Net Investment Purchase And Sale
-359,300
354,000
-391,000
278,500
Sale Of Investment
1,694,300
965,800
417,700
764,700
Purchase Of Investment
-2,053,600
-611,800
-808,700
-486,200
Capital Expenditure Reported
-1,325,300
-1,027,300
-1,008,600
-948,500
Operating Cash Flow
4,752,100
4,421,700
3,573,100
2,802,500
Cash Flow From Continuing Operating Activities
4,752,200
4,421,800
3,573,100
2,802,500
Change In Working Capital
-512,700
238,700
310,000
-840,200
Change In Other Working Capital
-99,400
-42,400
-34,700
-79,100
Change In Payables And Accrued Expense
326,200
385,700
152,100
-718,000
Change In Inventory
22,100
-56,100
-60,400
-7,700
Change In Receivables
-761,600
-48,500
253,000
-35,400
Changes In Account Receivables
-761,600
-48,500
253,000
-35,400
Other Non Cash Items
61,800
-9,300
40,900
33,300
Deferred Tax
-33,900
-52,200
-59,100
118,600
Deferred Income Tax
-33,900
-52,200
-59,100
118,600
Depreciation Amortization Depletion
868,400
845,900
833,600
796,300
Operating Gains Losses
20,300
10,000
13,000
46,500
Earnings Losses From Equity Investments
-22,600
-3,700
2,600
4,600
Net Foreign Currency Exchange Gain Loss
42,900
13,700
10,400
41,900
Net Income From Continuing Operations
4,348,200
3,388,600
2,434,700
2,648,000
4/5
Graham Score
Enterprising Investor
Requires deeper research. Suited for active investors.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $11.1B
Warren's Owner Earnings
$6.5B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
4/5 — Enterprising Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$13.4B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
3.89x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $3.16 to $5.14 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+62.8% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $13.4Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 3.89xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $3.16 to $5.14 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what SCCO is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
28.8%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
30.6%
30.4%
41.6%
35.9%
N/A
Repurchase of Capital Stock
N/A
N/A
N/A
N/A
N/A
Free Cash Flow
$3.4B▲
$3.4B▲
$2.6B▲
$1.9B•
N/A•
Warren's Owner Earnings
$6.5B
$5.2B
$4.3B
$4.4B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare SCCO against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
SCCO (SCCO) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 53.6%. Operating margin: 52.2%. Net margin: 32.3%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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